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2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
2012 towards smarter services
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2012 towards smarter services

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Confab by the Lakes at IIM-Udaipur

Confab by the Lakes at IIM-Udaipur

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  • 1. Zaheer Travadi - IBM General Business Geo ExpansionMar 03, 2012 2012 Towards Smater ServicesViews presented here are individual and may not be endorsed by IBMIIM -UDAIPUR 2012
  • 2. Smarter ServicesAgenda 1. Conversation Starter 2. 4Is 3. D4D 4. I2I 5. R=G; n=1 6. TMTCu Ver.22 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 3. Smarter ServicesWhy have Services become Predominant? Need for trade in services Complexity Specialization Productivity3 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 4. Smarter ServicesEconomy has reached a New Era A SMARTER PLANET PEOPLE INSTRUMENTED COMPANIES, INSTITUTIONS, INDUSTRIES INTERCONNECTED MAN-MADE SYSTEMS INTELLIGENT NATURE’S SYSTEMS Network Ubiquity More than a billion Internet users today Open Standards Widely-adopted technical and transaction specifications New Business Designs Horizontally-integrated operations + +4 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 5. Smarter ServicesThe Nature of Innovation is Changing Business Models Science & & Processes Technology People & Culture The marketplace requires innovation that combines people, technology and business value5 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 6. Smarter ServicesEnterprise Pressures & Opportunities commoditization pressures CEOs: Extent of fundamental change needed over next two years new/increased competition Moderate global market opportunities 22% adjacent market opportunities A lot Little or no 65% 13% global volatility & disruption competing business models IBM Global CEO Study 20066 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 7. Smarter ServicesIt’s time to take advantage of… smart objects the connectedness of everything supercomputing for everyone information put to work collaboration & co-creation the marketplace for expertise the virtual corporation7 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 8. Smarter ServicesIt’s time to innovate CEOs’ View: Primary Responsibility for Innovation Leadership products services 27% business processes No Owner 35% CEOs/Leaders business models 14% Division management and culture Mgrs 24% Functional Mgrs policy and society IBM Global CEO Study 20068 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 9. Smarter ServicesAgenda - 1 - Conversation Starter 1. 4Is – The 4 Is of Services 2. D4D 3. I2I 4. R=G; n=1 - TMTCu Ver.29 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 10. Smarter ServicesGoods Vs Services Innovation All the smart people in our field, work We must collaborate with smart for us people outside & inside To profit from R&D we must discover, We need not originate research to develop & distribute benefit We have get to market first to win if Building better business model more we innovate important than first to market We must control our IP and clearly We can profit from others’ use of our define our Firm’s boundaries IP and benefit from theirs Learn by “using” & “doing” Learn continuously through Feedback loops and client linkages Consumer Insight Consumer Experience10 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 11. Smarter ServicesGoods Vs Services Innovation11 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 12. Smarter ServicesService Marketing INTERFACE Courtesy: Fujitsu12 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 13. Smarter ServicesT-shaped Adaptive Innovator Breadth Depth Social Science Management Engineering (People) (Business) (Technology)13 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 14. Smarter ServicesAgenda - 2 - Conversation Starter 1. 4Is 2. D4D – Design for Delight 3. I2I 4. R=G; n=1 - TMTCu Ver.214 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 15. Smarter ServicesService User Experience Design – Honeycomb Model Courtesy: Semantic Studios15 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 16. Smarter ServicesServices Blueprint Courtesy: Spire16 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 17. Smarter ServicesDemocratization of Design Increasingly capable & cheaper tools that require less skill and training to use Make it easier for user-innovators to gain access to rich libraries of modifiable components that have been placed in the public domain – Today users design sophisticated new products, services, music and art – Open source software movement – Web 2.0 explicitly recognizes users add value17 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 18. Smarter ServicesAgenda - 3 - Conversation Starter 1. 4Is 2. D4D 3. I2I – Idea to Implementation 4. R=G; n=1 - TMTCu Ver.218 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 19. Smarter ServicesDeciding on your Services Innovation1. Check for Heuristic Affect – Has the team fallen in love with its proposal?2. Check for Groupthink – How were the dissenting opinions in the team handled?3. Check for Saliency Bias – could the diagnosis be overly influenced by an analogy?4. Check for Confirmation Bias – Are credible alternatives proposed?5. Check for Availability Bias – What if you had to make this decision later in time?6. Check for Anchoring Bias – Do you know where the numbers came from?7. Check for Halo Effect – Would a best practice replication be as successful?8. Check for Sunk Cost Fallacy - Is the proposal based on a history of past decisions?19 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 20. Smarter ServicesTypology of Services Innovation Business model Process/system Asset innovation: innovation: innovation: Substantial Changes in how Introduction of organizational information entirely new changes in how exchanged between services as an Asset revenues and profits customer and (service product) are earned service provider In reality all 3 are interrelated as an iterative process20 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 21. Smarter ServicesMany efforts to transform services have often been hampered Service Innovation Barriers Getting alignment across organizations 73% Obstacles to Improving Customer Experience Implementing technology 60% Trying to change employee behavior 57% Defining our customer experience strategy 49% Measuring customer experience 49% Understanding the needs of our customers 38% Designing usable interfaces for customers 35% Gaining executive commitment 27% Trying to change customer behavior 23% Identifying our target customers 16% None of the above 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Forrester Research % of Respondents21 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 22. Smarter ServicesServices Innovation Framework“The Ten Types of Innovation” by Larry Keeley, Doblin Inc.22 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 23. Smarter Services“Outside In” - Most Successful Areas for Services Innovation23 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 24. Smarter ServicesApproach to Services Innovation Venture Capitalists ISVs Business IT Analysts Partners Media Alumni Legal University & Academia Organization Thought Leaders Keystone Clients Community Relationships Investors Country Gov’t General Standards Programs Managers Bodies Multi-disciplinary Globally Collaborative Open24 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 25. Smarter ServicesAgenda - 4 - Conversation Starter 1. 4Is 2. D4D 3. I2I 4. R=G; n=1 – Business Model Innovation - TMTCu Ver.225 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 26. Smarter ServicesBusiness Model Innovation26 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 27. Smarter ServicesAssessing current and desired positions to create path Moving from current to target position • Are there ways to reconfigure / re- allocated sources of revenue in your business? Revenue Model • How can you sell elements of your services / offerings differently? • How can you leverage new / High • How can you reconfigure value emerging business models in your elements in your business? industries? From other industries? • How does new/emerging technology change the parameters? • How can you select and leverage • Are you a leader of follower when it unique assets & capabilities in your comes to industry change? business that provide competitive differentiation? Low • What should you do vs where should you partner for optimal value? Current Position Target Position Industry Model Enterprise Model Degree of Innovation Timing of Innovation BMI Path • How does the degree of innovation relate • Do you drive change in the industry, or is • Which business model innovation paths to your industry? How will it change in the it imposed on you? Lead vs follow? are we / should you explore? future? • Which ones are most aligned with our • What are the disruptive technologies or • Do you have the right balance? models emerging today? industry, capabilities, vision?27 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 28. Smarter Servicesn=1; R=G Well established Social Vision Consistent experience to all customers Drive excellence through Lean business processes Collaboration to co-create value Resources = Global create Engineered Engineered Experience Experience workforce Integrated N=1 Open doors in to Large Opportunities Scalability Niche Technology Architecture Courtesy: CK Prahlad28 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 29. Smarter ServicesAgenda - Conversation Starter 1. 4Is 2. D4D 3. I2I 4. R=G; n=1 - TMTCu Ver.2 – Too Much To Confuse You!!29 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 30. Smarter ServicesWhere does Six Sigma fall short in Services InnovationSix Sigma Thinking Customer-Experience Led Innovation 1. Introduce variability when it creates1. Eliminate variability (reductive) preference2. Eliminate waste 2. Allow the customer to judge what is waste3. Minimize cost 3. Tolerate additional cost as when it creates a preference4. Map processes 4. Map customer journeys5. Test hypotheses 5. Explore important questions to create new hypotheses6. Rely on large numbers to create certainty 6. Rely on numbers to uncover new possibilities7. Use process capability as final arbiter for 7. Use demonstrated customer behavior as the decision making final arbiter30 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 31. Smarter ServicesAre there “scale laws” of service innovation? Moore’s Law underlies much of the information technology and business capability growth over the last half century. Are there analogous “predictable capability doubling laws” that apply in the realm of services? It seems three improvement or learning curve laws that might be applicable in services: 1. The more an activity is performed (time period doubling, demand doubling) the more opportunities there are to improve the process 2. The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant measurement variables doubling) and modeled the more opportunities there are to improve the process 3. The more activities that depend on a common process (doubling potential demand points), the more likely investment can be raised to improve the process Example: Amazon’s Book Buying Recommendation Service Quality –The quality of the recommendations depends on accurate statistics – the more purchases made, the better the statistical estimates for recommendations Example: Call Centers Query-Response Productivity and Quality –The speed and quality of call center responses can be improved significantly given accurate statistics about the kinds and number of queries that are likely to be received. Example: New Service Offerings –The viability of new service offerings often depends on the scale (amount of demand) in adjacent market segments where service satisfaction is low enough to result in sufficient critical mass of defections to bootstrap the new offering. Example: Predictable Education Gains (Student Knowledge, Teacher Satisfaction) –If eLearning can be used to shift 20% of routine teacher activities into automation that can be covered in half the normal time, freeing up 10% of teacher time each year to innovate and add new content or exploratory activities to the curriculum, then each year students will be learning more and teachers will have time to try new things31 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 32. Andragogy from IBM IBM Institute for Business Value – http://www.ibm.com/iibv IBM University – http://www.ibm.com/university IBM Services Science Management & Engineering – http://www.ibm.com/university/ssme IBM INNOV8 Game – http://www-01.ibm.com/software/solutions/soa/innov8/full.html IBM CityOne Game* – http://www.ibm.com/software/solutions/soa/innov8/cityone/index.jsp32 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services
  • 33. Smarter ServicesThank you! Zaheer N Travadi IBM India General Business Manager - Geo Expansion Phone: 91-97404-00211 E-mail: zaheer.travadi@in.ibm.com33 3 March 2012 IIM-Udaipur 2012 Towards Smarter Services

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